UNT Cash
Control and
Departmental
Deposit
Handbook
University of North Texas
January 2014
Volume 2, Issue 1
STUDENT ACCOUNTING & UNIVERSITY CASHIERING SERVICES
Table of Contents
General Overview ..........................................................................1
Proper Handling of University Funds .............................................2
Internal Cash Control Procedures..................................................3
Five Principles of Internal Controls ................................................4
Accepting Payments ......................................................................5
Counterfeit Items ............................................................................7
Track All Transactions ...................................................................8
Record and Monitor Discrepancies ................................................8
Separation of Duties ......................................................................9
Preparing Departmental Deposits ..................................................9
Departmental Deposit Slip .......................................................... 10
Verification of Deposit ................................................................. 12
Petty Cash................................................................................... 12
Refunds ....................................................................................... 13
Reconciliation .............................................................................. 13
Handouts/Reference Websites ................................................... 14
General Overview
Cash (currency/coins, personal checks, bank drafts, money
orders, traveler’s checks, cashier checks, credit/debit cards)
transactions involving the university are subject to all applicable
state laws and university policies.
University employees who receive cash transactions should
properly safeguard, account for, and document every transaction.
In addition, cash should be deposited in accordance with
University Policy 2.2.1. Under no circumstances should
disbursements be made from cash receipts (i.e., for purchases or
to cash personal checks for employees or associates).
Wherever possible, duties such as collecting cash, maintaining
documentation, preparing deposits, and reconciling records
should be separated among different individuals.
The following guidelines are provided as a reference for
establishing an appropriate control environment. All account
holders are responsible for using these guidelines to assist in
fulfilling their responsibilities over the collection, custody and
deposit of cash receipts.
If assistance in establishing departmental controls and or
compensating controls is needed, Student Accounting and
University Cashiering Services is available for guidance. It is the
responsibility of accountholders to receive adequate training on
cash handling procedures and controls.
In the event of any significant cash overage or shortage,
reference University Policy 2.1.3 and the Fraud Policy (University
Policy 9.12). The department should maintain a record of all
reported discrepancies for possible review.
See UNT Cash Handling Controls 2.1.10.1 @
http://policy.unt.edu/policy/2-1-10-1
1
Proper Handling of University Funds
Only those employees who have been specifically
authorized by department id (deptid) or project id (projid)
holders should accept cash for university business.
Petty cash, demand deposits, working funds, bank accounts and
new department ids or project ids must be established in
accordance with University guidelines. Return of petty cash funds,
working funds or closing out of a demand deposit account must
be done through Purchasing and Payment Services.
Establish petty cash, demand deposit, and working funds in
accordance with University Policy 2.1.3.
All university departments collecting currency/coin, personal
checks, bank drafts, money orders, traveler’s checks, cashier’s
checks, or credit/debit card transactions should establish a
procedure to document all such transactions. Examples include a
pre-numbered receipt book or a computer generated receipt.
Student Accounting and University Cashiering Services must
approve all receipts issued as to form (Policy 2.2.1).
It is highly recommended that separate cash receipt logs be
maintained for walk-in transactions and mail transactions.
Documentation should minimally include the following information:
A. Payer’s name.
B. Form of payment (if check, check # should be
included).
C. Amount paid.
D. Date of payment.
E. Service/product rendered.
F. Initials of person(s) processing the transaction.
Departments receiving checks as payments should require the
maker of the check to make it payable to "UNT/Department
Name." Under no circumstances should a check for the university
be made payable to an individual or left blank.
2
All checks should be restrictively endorsed (stamped) immediately
upon receipt. The recommended endorsement is:
Pay to the order of Wells Fargo Bank
For Deposit Only UNIVERSITY OF NORTH TEXAS
Dept. XXXXXX
Student Accounting and University Cashiering Services can
provide information regarding the ordering of the endorsement
stamp.
The Dept ID/ProjID holder will be responsible for insuring their
location (department) is following the University cash handling
controls.
Internal Cash Control Procedures
Written procedures must be developed and followed by each
college, school, department, center, and/or institute associated
with the University that manages cash. Written procedures should
minimally include the following:
A. Authorization of person(s) to collect cash
B. Off-site cash collection procedures
C. Maintenance of cash receipt logs
D. Security and reconciliation of cash
E. Delivery of approved cash deposit to the Student
Accounting and University Cashiering Services
F. Office over/short procedures
G. Procedure to notify the appropriate campus authority in
event of loss.
3
Five Principles of Internal Controls
1. Cash handlers should have their own cash drawer.
Cash handlers (Employees) are responsible for
all transactions processed by them, therefore no
one should share the same cash drawer.
2. Every transaction MUST be receipted with at least two
copies of the receipt.
One copy to the customer and one copy retained
by the cash handler.
3. At the end of each shift/day, cash handlers should
reconcile their receipts with the cash on hand.
4. Someone other than the cash handler must verify the
deposit.
It is the responsibility of the Dept ID holder to
ensure cash on hand and cash deposited
equals actual receipts at all times.
5. After verifying the deposit, submit it to Student Accounting
and University Cashiering Service for processing.
A Departmental Deposit Slip must accompany
deposits turned in for processing.
4
Accepting Payments
The following are acceptable forms of payment:
•
Cash- Only U.S. currency should be accepted as a form of payment.
There are three common ways of counting currency. Whichever method
you use, recount the money as many times as necessary to come up
with the same total count twice. This means you will always count a
stack of currency at least two times. Employees should establish a
set, comfortable routine for counting currency.
Remember 1-2-3: 3 ways to count, always count 2
time, and count until you get 1 total!
The three common ways of counting currency
1.
2.
3.
Hand to Hand Method: When counting, separate bill into denomination with all the
bills facing up.

Count from the largest denomination first.

Place the currency in one hand.

Transfer one bill at a time from one hand to your other hand as you count.

Look at each bill to check for the identifying elements on each bill.

Make the hand-to-hand count your second count.

If your totals do not agree, repeat the count until they do.
Hand to Table Method

Sort the currency by denomination with the largest denomination first.

Place the currency in one hand.

Transfer one bill at a time from hand to table as you count.

Look at each bill to check for the identifying elements on each bill.

Make the hand-to-table count your second count

If your totals do not agree, repeat the count until they do.
Walk- Through Method

Separate the currency into stacks by denomination.

Use the thumb and forefinger of one hand to lift back the corner of each bill.
Then use the thumb and forefinger of your other hand to hold back the
counted bill.

Look at each bill to check for identifying elements and ensure correct
denomination.

Count the stack twice.

If your totals do not agree, repeat the count until they do.

Stack the pile in order with the highest denomination on the bottom and the
smallest denomination on top.
Note: The walk-through method is more often in balancing and deposit
preparation/verification not for customer transactions.
5
•
•
Coins- Only accept U.S. coins as payment. Establishing a set routine for
counting coins can maximize your accuracy. Rolled coins accepted from
customers should be ‘broken’ to verify the contents. The following list the
steps for receiving currency and coins:

Always keep money received in view of the customer until the transaction is complete.

Separate the currency from the coins.

Count the currency before the coins.

Separate coins into stacks by denomination separately.

Count each denomination of coins separately.

If your totals do not agree, repeat count until they do.
Checks- Only accept checks drawn from a U.S. bank account. The following
information should be closely inspected:
Date the check was written: check must have current date. It cannot be ‘stale’ dated nor ‘post’
dated. A stale dated check is dated 180 or more days in the past and a post-dated check is a
check dated in the future.
Payee (Who the check is written to): check should be payable to “UNT/Department Name”.
Under no circumstances should a check for the university be made payable to an individual or
left blank.
Payer (Account holder’s information): the company or individual paying for the services or
goods.
Amount (in numbers and words): the dollar amount must appear twice. Both the written and
numerically line should match.
Bank: the check must be drawn on a U.S. bank.
Signature: the check must be signed by the payer/drawer or authorized authority.
MICR numbers: Magnetic Ink Character Recognition (MICR) numbers are pre-printed at the
bottom left-hand corner. If the MICR line is not in the bottom left-hand corner, the check will
require special manual bank handling.
6
All checks should be restrictively endorsed (stamped) immediately upon receipt. The
recommended endorsement is:
Pay to the order of Wells Fargo Bank
For Deposit Only UNIVERSITY OF NORTH TEXAS
Dept. XXXXXX
Student Accounting and University Cashiering Services can provide information regarding the
ordering of the endorsement stamp. Obtain picture identification and write identification number
on check when feasible.
Counterfeit Items
When accepting cash, the following should be reviewed:
Paper: genuine US currency is printed on special paper that is part
cotton and part linen. Randomly placed hair-like red and blue chopped
silk fibers are impressed in the paper. Pay attention to the feel of ‘real’
mint paper, it has a softness compared to other (copy) paper.
Portrait: Genuine portrait looks lifelike and stand out from the fine
screen-like background
Watermarks: A watermark of the portrait is visible when the bill is held
up to the light. The watermark portrait should match the portrait on the
bill itself.
Security Thread: A polymer thread embedded vertically in the paper
indicates the denomination. This thread glows under ultraviolet light
with different colors for different denominations.
Color Shifting Ink: The color shifting ink on denominations greater than
$5, the numeral on the lower right on the front looks green when viewed
straight on but black from an angle.
Information on currency features is available from the U.S. Bureau of Engraving at
http://www.moneyfactory.com .
If your department receives large amounts of currency and/or large bills
on a regular basis, a counterfeit pen is highly encouraged. Counterfeit
pens can be purchased at any office supply store.
Note: If counterfeit item(s) are turned in with your deposit, the discrepancy
will be recorded to your Dept. ID.
A common method of ‘counterfeiting’ money is the practice of creating
‘raised notes’. Genuine paper currency is altered in an attempt to
increase its face value. One method is to glue or tape numbers from
higher-denomination bills to the corners of a note of lower denomination.
Employees can protect against accepting ‘raised notes’ by always
looking at the portrait on the bills they accept, instead of only looking at
the numeral.
7
Track All Transactions
All university departments collecting cash (currency/coins,
personal checks, bank drafts, money orders, traveler’s checks,
cashier checks, credit/debit cards) should establish a procedure
to document all receipts. Examples include a pre-numbered
receipt book and/or computer generated receipt. Student
Accounting and University Cashiering Services must approve all
receipts issued as to form (Policy 2.2.1).
It is highly recommended that separate cash receipt logs be
maintained for walk-in transactions and mail transactions.
Receipts should minimally include the following information:

Payer’s Name

Form of payment (if check, check# should be included)

Amount paid

Date of payment

Service/product rendered

Initials of person(s) processing the transaction
Record and Monitor Discrepancies
It is the responsibility of the Dept ID holder to ensure cash on
hand and cash deposits equals actual receipts at all times.
Shortages and overages should be reported immediately
according to University Policy 2.1.3
Cash overages and shortages, as well as any known
circumstances surrounding the overage/shortage should be
recorded and kept on file.
Refer to the University Fraud Policy 9.12 if evidence of fraud, theft
or a serious breach of fiduciary duty is suspected.
8
Separation of Duties
To the extent staffing levels permit, the duties of collecting,
recording, depositing, and reconciling cash receipts should be
separated among different individuals.
Where staffing levels do not permit separation of duties,
compensating controls such as strict individual accountability and
thorough management review and supervision exist.
The Dept ID/ProjID holder will be responsible for insuring their
location (department) is following the University cash handling
controls.
Preparing Departmental Deposits
Funds received by a department should be turned into the
Student Accounting and University Cashiering Services Office for
processing daily.
Funds brought to Student Accounting and University Cashiering
Services for processing must be accompanied by a Departmental
Deposit Slip.
o
Deposits are processed at the windows Monday-Friday
from 8:15- 4:00pm. Departments can drop off deposits
from 4:00- 5:00pm.
o
Deposits dropped off will normally be processed the next
working day. Delays should be expected during peak
periods such as fee payment, registration, etc.
Note: Deposits are not processed at the
‘express’ window.
Student Accounting
offers an “express”
window for
departments to drop
off deposits during
peak periods.
9
Departmental Deposit Slips
Departmental Deposit Slips can be purchased through Printing
Services. The following are the instructions for completing the
Departmental Deposit Slip:
Department: Your department’s name (For example. Student Accounting).
Dept ID: Dept ID is your departmental ID number.
Account: Account number on the Departmental Deposit Slip should identify the
revenue/expense code.
If you do not know the account (revenue/expense) code, provide an
explanation as to what the funds are for (i.e.… registration, T-Shirt
sales, conference). If you are unsure what account to use, contact the
Head Cashier at ext. 3220.
If multiple accounts are involved in a deposit, this information should be
included on the Departmental Deposit Slip with the corresponding dollar
amount you wish each account number to receive credit. This total
should equal the deposit.
Reference: Departments can reference an event/resource of the deposit, enter
the name on the Reference line. There is a maximum of 30 characters and the
information is reflected in your budget summary.
Currency/Coin: Funds must be accurately accounted for in the appropriate
area(s) by denominations.
Checks: If depositing more than one check, the batch of checks must be
accompanied with an adding machine tape with the total recorded. Each check
should be endorsed. The recommended endorsement is:
Pay to the order of Wells Fargo Bank
For Deposit Only UNIVERSITY OF NORTH TEXAS
Dept. XXXXXX
Receipt Number: The department should record their internal receipt numbers
reflecting the deposit in the Receipt Number area.
Sales Amount Total: The total should equal the total amount of
cash/coins/checks listed on the Departmental Deposit slip.
Sales Tax: Departments that sell taxable items must charge the appropriate sales
tax. For products sold in Denton, the Denton sales tax rate must be charged. If
products sold at a location outside of Denton, that city’s sales tax rate must be
charged. To determine the sales tax rate information for a city, please visit the
State of Texas website at http://www.window.state.tx.us/taxinfo/local/index.html .
10
If products are shipped outside of the State of Texas, sales tax is not charged.
However, proper documentation that indicates where the items sold out-of-state
were shipped must be maintained in accordance with sales tax regulations.
When the funds are deposited, the sales tax rate that was charged should be
indicated on the Departmental Deposit Slip.
Cash Over/Short: Any overages/shortage according to the department’s receipts
must be recorded accurately. Continuous overages/shortages or unusual amounts
will be reported to a supervisor and/or department head by Student Accounting
and University Cashiering Services.
Name of Preparer: The department employee preparing the deposit should sign
the departmental deposit slip and provide a telephone number for contact
purposes. If a deposit is turned in to our office unsigned, we will request the
person dropping off the deposit to sign the slip.

The white copy of the departmental deposit slip will be retained by
Student Accounting.

The yellow copy of the departmental deposit slip will be returned to the
department after Student Accounting has processed the deposit. An
EIS receipt will accompany the yellow copy.
When yellow copy of the Departmental Deposit Slip and the receipt are
returned to the department, the receipt should be matched to the pink
copy, and then attached for record retention.
Note: Departments are responsible for ensuring the deposit
amount turned in for processing is the amount that was booked in
the Student Accounting Office.

The pink copy of the departmental deposit slip will be retained by the
department. If the department is dropping off the deposit for processing
later, a Student Accounting Employee can sign the departmental deposit
slip and return the pink copy to the department as acknowledgment of
receiving the deposit.
Immediately report any discrepancies found in your deposit to the
Student Accounting Office. Contact the Head Cashier if you have
questions about your deposit.
Deposits with errors will not be returned to the department for correction.
The department contact person will be required to come to Student Accounting to
make the correction or verbally instruct the cashier area employee.
Deposits that will be credited to a grant/project ID number must go to the
Research Services Office. Research Services is located in the Administration
Building, Room 160
Deposits recorded as gifts/donations must go to the Advancement Office. The
office of Advancement is located in the Gateway Center, Tower Section, 2nd floor.
11
Verification of Deposit
Departmental employees should prepare the deposit. A
supervisor should verify the deposit before it is submitted to
Student Accounting and University Cashiering Services for
processing.
Provide adequate and proper storage for the securing of deposits.
Avoid storing funds in the office overnight. Where feasible,
deposits should be made daily.
Lock combinations and custody of keys should be restricted to a
minimum number of employees. Combinations and keys should
never be stored in an unlocked desk drawer or unsupervised
area.
For emergencies or in the absence of the fund custodian, copies
of combinations and/or keys should be secured by the department
head or his/her designee. Access to combinations and keys
should be limited to a minimum number of people. Safe
combinations and keys should be changed periodically and
always when permanent custody changes (employee turnover or
reassignment of duties, etc.).
Maintain and safeguard cash receipt, deposit, and reconciliation
documents.
Such documents should be readily available for audit.
Records should provide clear documentation of cash receipts
from the time of collection to the time of deposit.
Petty Cash
Petty Cash should be:
•
Locked in a secure area, (example…drawer)
•
Limited to the number of people who have access
•
Accounted for and verified daily.
*See Petty Cash, Demand Deposits, Working Funds 2.1.3 @
http://policy.unt.edu/policy/2-1-3
12
Refunds
All refunds are processed in accordance with University
guidelines. Additionally, under no circumstances should refunds
be issued directly from cash receipts or petty cash.
Student refunds should be processed through Student Accounting
and University Cashiering Services in accordance with University
Policy 2.2.22.
Non-student refunds, such as fees paid for mini-courses, fees
paid by clients at various centers and clinics, game guarantee
type refunds from athletic events, facility use deposits, etc.,
should be processed through Purchasing and Payment Services.
Reconciliation
The manager/ department id or project id holder should review the
daily detail transaction reports produced from EIS to ensure
actual deposits agree with departmental cash receipt records.
The manager/ department id or project id holder should review or
assign a second employee to review the daily detail transaction
reports to match actual deposits with departmental cash receipt
records.
13
Reference Websites
•
•
•
14
Student Accounting and University Cashiering
Services Departmental Information
o http://essc.unt.edu/saucs/departmentinfo.html
U.S. Bureau of Engraving
o http://www.moneyfactory.com
Association of Public Treasurers
o www.PublicTresuryInstitute.com